Romania's Grup EM targets Bucharest Exchange listing after partly successful IPO

Grup EM, a Romanian holding active in the field of energy infrastructure with Electromontaj among its subsidiaries, announced its firm intention to list its shares on the AeRO market of the Bucharest Stock Exchange despite failing to meet the 10% free float following the IPO completed recently, Ziarul Financiar announced.

The company's capitalisation at the lower end of the price range proposed under the IPO is RON 660 million (EUR 130 million).

Currently, the company does not meet the minimum free-float criterion of 10%, required for admission to trading, but it intends to carry out a new share capital increase in the next 12 months, depending on market conditions, to expand the shareholder base and meet listing requirements, according to a press release of the company.

"The company will apply for admission to trading now, based on a commitment, with the 10% free float condition to be met in the next 12 months through a capital increase," said Radu Dăscălescu, project manager, corporate finance, TradeVille.

The initial public offering of Grup EM, which includes Electromontaj and Iproeb, ended on October 16 after two weeks of subscriptions, with a value attracted from investors of approximately EUR 4.8 million, equivalent to 38% of the target.

(Photo source: BVB)